Structural Changes and Growth Factors of China’s Textile Industry: 1997-2012

Abstract

In this study, the Input-Output Structural Decomposition Analysis (I-O SDA) method is adopted to analyze the structural change in China’s textile industry during 1997-2012 and to measure the contribution rate of the growth factors (consumption, investment, inventory, exports and imports) affecting change in its gross output. Then the key factors and main driving forces promoting textile industry development are figured out. The results show that China’s textile industry has experienced great change both in scale and structure. Among the growth factors, the contribution rate of exports is the largest, followed by investment, consumption, imports and inventory. The textile industry still relies heavily on exports, investment and consumption, while the contribution rate of imports is relatively small. In addition, technological change makes a positive contribution with technological innovation. Among the industrial sectors, the cotton & chemical fibre textile industry holds dominance, with the textile manufactured goods industry exhibiting tremendous development, the growth of the knitted textile industry fluctuating, and the wool textile industry and hemp & silk textile industry progressing slowly. Finally relevant policy suggestions are proposed to promote the balanced and coordinated development of China’s textile industry.